Crypto Market Wipeout: $2B in 24-Hour Liquidations as Fear Hits Extreme

BTC-USD -8.14% ETH-USD -10.28% SOL-USD -10.68%

Quick Read

• Bitcoin (BTC) dropped to $81,050 and triggered $2B in liquidations across 391,000 traders in 24 hours.

• Bitcoin ETFs recorded $3.79B in November outflows with BlackRock alone seeing $2.47B in redemptions.

• The Crypto Fear & Greed Index fell to 11, matching its lowest reading since the FTX collapse in November 2022.

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The cryptocurrency market suffered a brutal selloff on November 21, 2025, erasing over $2 billion in leveraged positions within 24 hours and dragging investor sentiment to extreme fear. Bitcoin (CRYPTO: BTC) slipped below key support near $85,000, triggering a cascade of margin calls across global exchanges that rippled through the entire market.

Bitcoin touched $81,050—its lowest level since April—while Ethereum (CRYPTO: ETH) plunged 10%. Major tokens like Solana, XRP, and Binance Coin weren't spared either, losing between 20% and 35% from their November highs. Coinglass reported that 391,000 traders were liquidated, and the Crypto Fear & Greed Index sank to 11, a level not seen since the FTX collapse in November 2022.

The Numbers Behind the November 21 Selloff: $2B Wiped in 24 Hours

The damage was swift and severe. Coinglass data shows 391,000 traders lost positions, with total liquidations reaching $1.91 billion. Long positions took the brunt—$1.78 billion compared to just $129 million in shorts. That lopsided ratio shows how heavily traders were betting on prices moving higher.

Bitcoin led the carnage with $960 million in liquidations, followed by Ethereum at $403 million. The single largest liquidation was a $36.78 million BTC position on Hyperliquid (a decentralized perpetuals exchange). High-profile casualties included Machi Big Brother, whose account balance shrank to just $15,538 after his leveraged Ethereum longs got wiped out. His total losses exceeded $20 million. Several major Ethereum whales also lost positions ranging from $2.9 million to $6.5 million as ETH fell below $2,900.

The total crypto market cap dropped 6% in 24 hours to $2.9 trillion, slipping below the $3 trillion threshold for the first time in five months. That's a psychological level that matters—when markets breach round numbers like that, it tends to spook investors even more.

What Triggered the November Selloff?

There wasn't a single catalyst. Instead, multiple pressures built up over weeks and finally broke through critical support levels, forcing overleveraged traders to close positions.

Bitcoin Breaks Key Support

Bitcoin had been struggling to hold $100,000 through early November. When it failed and selling intensified, prices fell toward $85,000. Analysts had warned that dropping below $80,000 could trigger massive losses, since that level represents roughly where many institutions bought in. On November 21, Bitcoin briefly touched $81,050—dangerously close to that threshold.

The technical breakdown mattered because it triggered automated sell orders. When Bitcoin loses support, leveraged longs get liquidated automatically, which pushes prices lower, and then triggers more liquidations. It's a feedback loop that accelerates losses.

ETF Outflows Drain Liquidity

Institutional money left crypto throughout November. Bitcoin ETFs recorded $3.79 billion in net outflows for the month, surpassing February's previous record of $3.56 billion. BlackRock's IBIT alone saw $2.47 billion in redemptions—more than half the total.

On November 20, U.S. spot Bitcoin ETFs collectively experienced $903 million in outflows. That was one of the largest single-day withdrawals since these products launched in January 2024. BlackRock's $523 million outflow on November 18 marked its worst day on record.

These outflows matter because they reduce market liquidity. When big funds pull money out, there are fewer buyers to absorb selling pressure. Even long-term holders joined the exodus—over the past month, veteran holders unloaded more than 800,000 BTC, the highest volume since early 2024.

Fed Uncertainty Removes a Key Tailwind

Crypto investors had been counting on more Federal Reserve rate cuts after two consecutive reductions earlier in the fall. Those hopes faded when Fed officials struck a hawkish tone at their late-October meeting. On October 29, Fed Chair Jerome Powell said another rate cut in December wasn't "a foregone conclusion." Bitcoin dropped immediately after those remarks.

Lower interest rates typically help speculative assets like crypto because they make borrowing cheaper and push investors toward riskier bets. When the Fed signals it might pause cuts, that removes a tailwind crypto had been relying on. Stubborn inflation data reinforced the Fed's caution, making November's environment less friendly for risk assets.

Market psychology turned sharply negative too. The Crypto Fear & Greed Index sank to 11 by mid-November, indicating extreme fear. At that point, even neutral news gets interpreted negatively. Reports of crypto companies selling holdings or exchanges experiencing technical issues spooked traders who were already on edge.

Bitcoin, Ethereum, and Solana Lead the Losses

Bitcoin lost its $85,000 support and plunged to $81,600 overnight before recovering slightly. That marked its lowest price since April and put it more than 30% below the October 6 all-time high of $126,000. The speed of the drop caught traders off guard—when Bitcoin moves that fast, stop-loss orders don't always trigger at the prices people expect.

Ethereum fell even harder on a percentage basis. ETH dropped below $2,900 at the selloff's peak, causing $403 million in long positions to liquidate. Even large holders weren't spared. On-chain data showed major Ethereum whales getting liquidated, with individual losses ranging from $2.9 million to $6.5 million.

Solana posted double-digit losses too. SOL's decline accounted for more than $100 million in liquidations as leveraged traders got flushed out. Other top tokens like Binance Coin and XRP fell 10% or more on the day, dragging the entire market lower.

How this Compares to the October $19B Liquidation

While $2 billion in liquidations is substantial, it's a fraction of the $19 billion wiped out on October 10. The key difference was leverage depth—open interest was much higher in October, and that crash came from a macro shock (Trump's tariff announcement) combined with technical selling.

The November selloff was more of a mechanical deleveraging. Prices fell through widely watched support levels, triggering automated liquidations that snowballed. ETF outflows amplified the pressure by draining liquidity just when the market needed buyers most.

Here's what both events show: crypto markets remain heavily leveraged, and sentiment can flip from extreme greed to extreme fear quickly. The October crash saw the Fear & Greed Index at similar lows, and both times it took weeks for confidence to rebuild.

For traders, the lesson is clear—risk management matters. Lower leverage gives you more room to absorb volatility without getting liquidated. Respecting key support levels helps too, because those tend to be where automated selling kicks in. And watching institutional flows through ETFs now provides early warning signs, since those vehicles can amplify moves in both directions as mainstream funds adjust exposure.

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